- Australian Potash (APC) has entered a trading halt until after the weekend today as it gets ready to launch a fresh capital raising plan
- The sulphate of potash (SOP) company has not yet revealed how much it plans to raise or for what it will use the fresh funding
- At this stage, details of the raise are set to be announced on Monday, May 24, at which point the trading halt on APC shares will be lifted
- While Australian Potash has a diverse WA mining portfolio, its core focus is on the Lake Wells SOP project
- Sulphate of potash is a low-salt plant fertiliser ideal for fruit, vegetable and coffee crops and preferred by Australia’s agriculture industry
- Taking a look at the company’s latest financial report, APC had just under $3.5 million worth of cash in the bank at the end of March this year
- Shares in Australian Potash last traded for 18 cents each on Wednesday, May 19
Australian Potash (APC) has entered a trading halt until after the weekend today as it gets ready to launch a fresh capital raising plan.
The sulphate of potash (SOP) developer revealed the upcoming capital raise in a market announcement this morning, though at this stage it’s still not confirmed how much APC plans to raise and for what it will use the funds.
The details of the capital raise are set to be announced on Monday, May 24, after which point the trading halt on Australian Potash shares will be lifted.
The company holds four key projects in Western Australia’s Eastern Goldfields region — the Lake Wells SOP project, the Lake Wells gold project, the Laverton Downs base metals project, and the Lake Darlot SOP and gold exploration project.
While APC’s project portfolio is diverse, the company’s main focus is the Lake Wells SOP project, which is predicted to produce sulphate of potash over 30 years of operations.
Sulphate of potash, also known as potassium sulphate, is a mineral plant fertiliser. The mineral provides crops with essential nutrients but has little to no salt content, making it ideal for use in crops of fruits, vegetables and even coffee.
As such, SOP is the preferred fertiliser for much of Australia’s agriculture industry.
Australian Potash’s Lake Wells SOP project lies around 500 kilometres northeast of Kalgoorlie.
Taking a look at the company’s latest financial report, APC had just under $3.5 million worth of cash in the bank at the end of March this year.
Considering the company had around $1.5 million in net cash outflows for the March quarter, this gives APC just over two financial quarters of funding if spending remains consistent.
Still, the company has not revealed if the upcoming capital raise is designed to simply improve its balance sheet or if something bigger is brewing for the APC.
Shares in Australian Potash last traded for 18 cents each on Wednesday, May 19.